In a high-turbulence week for global markets, The Numbers portfolio grappled with mixed results across its diverse range of investments, ultimately closing with a 1.06% loss. Despite this negative mark, the portfolio notably outperformed the S&P 500, which slid 2.50% over the same period.
The strategy saw its brightest spot with NVIDIA Corporation, delivering a modest gain of 0.50%. NVIDIA has been cementing its position as a leader in the semiconductors market, where its cutting-edge GPU technology plays a central role in powering AI and gaming innovations. These aspects likely sustained investor confidence even amid broader market jitters.
Our long position in the VanEck Semiconductor ETF did not echo similar resilience, ending with a 2.28% loss. Semiconductor companies are currently facing fluctuations due to supply chain bottlenecks and macroeconomic headwinds affecting the tech sector.
In the equities space, a strategic short on Emerging Markets iShares MSCI ETF generated a positive return of 0.86%. This performance underscores the lingering macroeconomic challenges faced by emerging markets, from a stronger U.S. dollar to global economic slowdowns.
Among individual stocks, our bets on American stalwarts like Apple, McDonald’s, and Comcast registered weak returns, amplifying jitters around consumer spending trends amid rising interest rates. Apple’s loss of 2.52% reflects investor caution as the tech giant navigates through production challenges.
Verizon and AT&T, falling 0.90% and 3.06% respectively, underscore challenges faced by traditional telecom as they keep evolving within a rapidly transforming digital landscape. With high operational costs and competitive pricing pressures in the sector, telecom giants are being held under the microscope by cautious investors.
Our decision to short the 20+ Year Treasury Bond iShares ETF slightly backfired with a 0.35% loss, as long-term treasury bonds were buoyed amidst market-wide sell-offs in equities, reinforcing bonds as a safe haven during these volatile times.
The digital currency realm took a significant hit, evidenced by Ethereum’s sharp 9.34% slump, as the crypto market continues to weave through regulatory noise and liquidity stresses.
While tainted by common themes of uncertainty and market volatility, The Numbers’ portfolio succeeded in modestly hedging against broader declines in the equity markets.
Looking ahead, greater focus will be on strategically adapting to the evolving market conditions, while keeping a vigilant eye on macroeconomic trends—be it inflation concerns, rate hikes, or geopolitical events—that are likely to sway investors in the weeks to come.